Covered bonds legislation passed by Belgian Chamber

The entry into force now only requires the publication in the Belgian State Gazette. We will publish a further newsflash once the timing of the publication is known.
Additionally, a Royal Decree determining, among others, the eligibility and valuation criteria for the cover assets is being finalised and is expected to be approved shortly after the summer recess.

Short Reads - In a decision of Friday 15 May 2020, the Dutch Supreme Court confirmed that fixed-to-floating rate perpetual equity securities (“perpetual securities”) should not be considered a “participation loan” (deelnemerschapslening) for Dutch tax purposes. Under Dutch tax law, characterization of a debt instrument as a “participation loan” implies that such instrument is deemed equity for Dutch corporate income tax purposes. Characterization of the perpetual securities as a participation loan would have meant that the interest would have been regarded non-deductible dividend.

Articles - The two in-depth analyses examine, respectively, the impact of the reform on the governance of financial institutions and on financial transactions, and the new form of limited company ("Société à responsabilité limitée"/"Besloten vennootschap").